In a day of economic crisis and health care reform, many people are reconsidering the traditional approach to obtaining health insurance. If you are one of the fortunate employed persons among the sea of jobless Texans, you most likely have your spouse and children covered under the same group plan through which your employer offers health benefits to you. Traditionally, adding your spouse and children to your company’s Texas health insurance plan was the most convenient and inexpensive option. However, is it really the most affordable option?
First things, first…let’s define the difference between an individual health insurance plan and a group health insurance plan. Individual health insurance is a health care plan offered to individuals and their families (not just to individuals) through private insurance companies. Group health insurance is a health care plan sold to employers by these same private insurance companies at a discounted rate, depending on the size of the company (and the number of people covered).
What is not common knowledge is that individual health insurance plans are almost always CHEAPER than the cost of similar benefits with the same insurance company offered through a group health insurance plan!
So why would anyone get group health insurance through their company?
The primary benefits of group health insurance are received by the employee, not the spouse or dependents of the employee. If the employer is paying all of most of the premiums for the employee, then, essentially, the employee is receiving free money toward health insurance coverage. Also, group health insurance must cover every employee regardless of pre-existing conditions; therefore, the employee can save money through a group health insurance plan, if he/she has existing conditions that could deter them from being eligible from obtaining individual health insurance or that could increase the premiums of an individual health insurance plan. Finally, the primary benefit of group health insurance is the addition of maternity coverage. Most individual health insurance plans do not include coverage of maternity costs, though this option is available to be added by most private insurance companies. However, not everyone needs maternity options and why should everyone’s premiums be increased to cover those employees with pre-existing conditions, if you or your family don’t have any pre-existing conditions?
Because private health insurance companies can pick and choose who they cover under individual insurance plans, these plans are usually very affordable and far more customizable to the personal needs of the individual and their immediate family members. If your family is healthy and maternity coverage is not an issue, an individual insurance plan for your spouse and dependents most likely will be the most affordable and most beneficial option for your Texas health insurance needs.
In a time where the cost and quality of health insurance coverage is more important than convenience; Texans must look at other options, even non-traditional ones, in order to protect themselves and their families.
